Anyone in business right now will be experiencing financial problems caused by the economic climate. If that’s not enough there are always additional financial problems to deal with that are a result of clients that don’t pay you the money you’re owed. All businesses can experience this problem from time to time and as a result the cash flow of the company suffers. If you find yourself trying to get paid money you’re owed from a reluctant payer, there are a few ways you can deal with the situation.
Never Let it Lie
The most important thing for you to do is remember that you have every right to get paid. You provided the agreed service or product and now it’s time for the client to pay up. It is important that you establish the process you will follow even before you find yourself with a client who isn’t paying you. Decide how long to wait before you give them a call, create a template of a letter and an email and learn how you can get legal help. Set out your procedures and include them in your terms and conditions. Clearly display your terms and conditions on a page of your website and include them along with your contract when you begin working with a new client.
Get In Touch
You need to speak to the client to find out what the problem is. The best way to do this is to give them a call as they cannot simply ignore you once they have picked up your call. Ask questions such as:
Always remain polite and professional. Sometimes the client will simply have forgotten or is just waiting for some money to come in themselves.
Avoiding the Problem
If you are fed up of suffering from the stress and lack of cash flow caused by non-paying clients, you must evaluate your systems. Introduce credit checks; make it clear in your discussions prior to agreeing to the contract that you expect to be paid on time. You can also charge interest for late payments and ask for deposits to be placed before you begin work. Remember, you are running a business and therefore you must have systems in place that will help you to maintain your business and grow.
Once you have new systems in place it is worth looking at your options. One method that is used to speed up the cash flow in a business is recruitment factoring. Once you have established worthy clients, use factoring to receive instant payments for your invoices and simply repay the amount once the client has paid by the agreed date. Don’t let invoices and clients cause your business problems, find solutions that work.
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- Were they not happy with the service or product you supplied
- Ask if they are having problems paying
- Try to agree a date when the payment needs to be paid by. If this date comes and goes, give the client a call the following day and investigate. If they are unable to commit to a date, inform the client you will call them the following day once they have had time to check their calendar.